By Cristal Cody
Tupelo, Miss., July 22 – KKR Financial Advisors II, LLC priced $499.2 million of notes due 2032 in the KKR CLO 26 Ltd./KKR CLO 26 LLC transaction, according to market sources on Monday.
The CLO sold $310 million of class A-1 senior secured floating-rate notes at Libor plus 132 basis points, $15 million of class A-2 senior secured floating-rate notes at Libor plus 175 bps, $39 million of class B-1 senior secured floating-rate notes at Libor plus 205 bps and $9 million of 4.037% class B-2 senior secured fixed-rate notes.
KKR CLO 26 also priced $25 million of class C senior secured deferrable floating-rate notes at Libor plus 275 bps, $30 million of class D senior secured deferrable floating-rate notes at Libor plus 385 bps, $29.7 million of class E senior secured deferrable floating-rate notes at Libor plus 700 bps and $41.5 million of subordinated notes.
Credit Suisse Securities (USA) LLC was the placement agent.
The CLO has a two-year non-call period and a five-year reinvestment period.
The offering is collateralized primarily by broadly syndicated first-lien senior secured corporate loans.
KKR has priced three new CLOs and refinanced one vintage CLO year to date.
The investment firm is a subsidiary of San Francisco-based KKR Credit Advisors (US) LLC.
| Issuer: | KKR CLO 26 Ltd./KKR CLO 26 LLC
|
| Amount: | $499.2 million
|
| Maturity: | 2032
|
| Securities: | Fixed-rate, floating-rate and subordinated notes
|
| Structure: | Cash flow CLO
|
| Placement agent: | Credit Suisse Securities (USA) LLC
|
| Manager: | KKR Financial Advisors II, LLC
|
| Call feature: | Two years
|
| Pricing date: | July 16
|
| Settlement date: | Aug. 15
|
|
|
| Class A-1 notes
|
| Amount: | $310 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 132 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
|
|
| Class A-2 notes
|
| Amount: | $15 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 175 bps
|
| Ratings: | Moody’s: Non-rated
|
| Fitch: AAA
|
|
|
| Class B-1 notes
|
| Amount: | $39 million
|
| Securities: | Senior secured floating-rate notes
|
| Coupon: | Libor plus 205 bps
|
| Rating: | Moody’s: Aa2
|
|
|
| Class B-2 notes
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| Amount: | $9 million
|
| Securities: | Senior secured fixed-rate notes
|
| Coupon: | 4.037%
|
| Rating: | Moody’s: Aa2
|
|
|
| Class C notes
|
| Amount: | $25 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 275 bps
|
| Rating: | Moody’s: A2
|
|
|
| Class D notes
|
| Amount: | $30 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 385 bps
|
| Rating: | Moody’s: Baa3
|
|
|
| Class E notes
|
| Amount: | $29.7 million
|
| Securities: | Senior secured deferrable floating-rate notes
|
| Coupon: | Libor plus 700 bps
|
| Rating: | Moody’s: Ba3
|
|
|
| Equity
|
| Amount: | $41.5 million
|
| Securities: | Subordinated notes
|
| Ratings: | Non-rated
|
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